Governance rigidity, industry evolution, and value capture in platform ecosystems

Uzunca, Bilgehan; Sharapov, Dmitry; Tee, Richard

doi:10.1016/j.respol.2022.104560

Cited by 22 publications

(11 citation statements)

References 77 publications

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“…From the perspective of platform owners, sustaining and increasing the engagement of complementors is essential for the survival of their platform ecosystem (Blaschke et al, 2018; McIntyre et al, 2021). To that end, platform owners, too, balance their value‐co‐creating and value‐capturing activities to stimulate third‐party contributions while ensuring value capture for themselves (Schreieck et al, 2021; Uzunca et al, 2022).…”

Section: Literature Reviewmentioning

confidence: 99%

Sustaining complementor engagement in digital platform ecosystems: Antecedents, behaviours and engagement trajectories

Engert

Evers

Hein

et al. 2023

Information Systems Journal

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Digital platform ecosystems increasingly dominate the enterprise software domain, and the persistence of platforms depends on the sustained engagement of complementors. However, there is a limited understanding of its antecedents, complementors' evaluation of antecedents and the manifestations and dynamic changes of complementors' engagement. Therefore, we investigate complementors' engagement within platform ecosystems over time. We draw on actor and stakeholder engagement from service research to conceptualise complementor engagement (CE) and create an integrated empirical understanding of CE and its dynamics in digital platform ecosystems. Our embedded case study builds on 30 interviews with complementors in Anubis and Osiris enterprise software platform ecosystems. Inductive data analysis reveals five CE antecedents: platform resources and rules, platform value proposition, platform agents, customer needs and other complementors' value propositions. The antecedents are associated with three CE behaviours: generating, networking and synchronising. Further analysis of CE over time resulted in 26 different sequences representing stable and changing engagement trajectories, the latter comprising selective, growing and abating engagement as subcategories. We show how complementors' evaluations of antecedents lead to behaviour changes, providing a novel perspective on the dynamics underlying CE. Finally, we link complementors' evaluation outcomes to their (dis)satisfaction, contributing to the discussion on what drives and impedes CE. The findings implicate the debate on dynamic platform governance and inform platform owners about using cooperative and competitive approaches in the short and long term.

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Section: Literature Reviewmentioning

confidence: 99%

Sustaining complementor engagement in digital platform ecosystems: Antecedents, behaviours and engagement trajectories

Engert

Evers

Hein

et al. 2023

Information Systems Journal

View full text Add to dashboard Cite

show abstract

“…Fourth, managing an industry-wide platform ecosystem requires addressing cooperation and competition among the actors (Cennamo and Santaló, 2019;Hannah and Eisenhardt, 2018). Therefore, the literature argues that the initial specification of governance terms is critical for the success of the platform ecosystem (Goldsby and Hanisch, 2022;Uzunca et al, 2022). In particular, defining the governance terms early on is acutely important when deploying a blockchain-based platform ecosystem because certain collaboration and coordination rules are embedded in the initial specification and are enforced according to the business logic encoded in the blockchain software (Chen et al, 2021).…”

Section: Governing a Blockchain-based Platform Ecosystemmentioning

confidence: 99%

“…Furthermore, a blockchain-based platform ecosystem generates a data layer (Alaimo and Kallinikos, 2021), that can be further utilized through a marketplace of complementary applications that create additional value for all platform contributors, complementors, and users (e.g., smart-contract solutions for automating and self-executing transactions) (Bonina et al, 2021;Dolgui et al, 2020;Schmidt and Wagner, 2019). However, developing a blockchain-based platform ecosystem creates unique challenges for the platform sponsor which may influence the industry-wide adoption necessary for the platform's success (Helfat and Raubitschek, 2018;Uzunca et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

“…Second, effective platform governance mechanisms are critical to ensure industry-wide adoption and platform success (Murthy and Madhok, 2021;Rietveld and Schilling, 2021;Uzunca et al, 2022). A blockchain platform architecture, by design, puts in place on-chain technology governance features (Lumineau et al, 2021;Wareham et al, 2014).…”

Section: Introductionmentioning

confidence: 99%

“…However, the underlying blockchain features are often insufficient to establish the level of trust that would convince prospective global supply chain actors to join the platform (De Filippi et al, 2020;Zhao et al, 2022). Consequently, a platform sponsor needs to design various off-chain governance mechanisms that would address the inter-organizational concerns of prospective actors (Kostić and Sedej, 2022;Schmeiss et al, 2019;Uzunca et al, 2022). Still, issues concerned with establishing platform interoperability and the associated process of digital standardization (Rossi et al, 2019), and, more broadly, platform regulation (Cusumano et al, 2021;Jacobides and Lianos, 2021) are underexplored in the platform literature.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Managing a blockchain-based platform ecosystem for industry-wide adoption: The case of TradeLens

Jovanovic

Kostić²,

Sebastian³

et al. 2022

Technological Forecasting and Social Change

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How optimal distinctiveness shapes platform complementors' adoption of boundary resources

Kang,

Grodal

2024

Strategic Entrepreneurship

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Research SummaryWhat drives platform complementors to adopt boundary resources? We address this question by drawing on optimal distinctiveness. We suggest that competitors' adoption of a platform boundary resource on the one hand increases the legitimacy of the resource, but on the other hand decreases a focal complementor's ability to differentiate by adopting it. We therefore hypothesize an inverted U‐shaped relationship between prior and future adoption of a platform boundary resource. In a dataset of health and fitness apps on the Apple iOS platform and through three online experiments, we find support for this relationship and for the existence of two important complementor‐specific contingencies that moderate this relationship. This paper expands our understanding of how optimal distinctiveness drives the dynamics of platform‐mediated markets.Managerial SummaryIn platform markets, complementors face a dilemma: which of the available platform boundary resources should they adopt? We show that a focal complementor's decision to adopt a boundary resource is the result of a strategic trade‐off between the desire to be both legitimate and to be differentiated from competitors. The result is that initially many complementors adopt the boundary resource and it becomes viewed as increasingly attractive by other platform complementors. However, over time as many complementors have adopted the boundary resource, the remaining complementors begin to shy away from adopting it because they worry that doing so might hurt their ability to be differentiated on the platform. These results are shaped by the complementors' performance and how dedicated they are to the platform.

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Governance rigidity, industry evolution, and value capture in platform ecosystems

Cited by 22 publications

References 77 publications

Sustaining complementor engagement in digital platform ecosystems: Antecedents, behaviours and engagement trajectories

Sustaining complementor engagement in digital platform ecosystems: Antecedents, behaviours and engagement trajectories

Managing a blockchain-based platform ecosystem for industry-wide adoption: The case of TradeLens

How optimal distinctiveness shapes platform complementors' adoption of boundary resources

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